Altek — Interim / Quarterly Report 2014

May 9, 2014

2014 Q1 Investor Conference May 9, 2014

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14Q1 IS Highlights

• Net Sales: slightly decreased 4% from last quarter

• Seasonal demand, product mix changed.

• Gross Profit %: 8.1%, up 2.4% (QoQ) & 1.5% (YoY)

• Product mix changed.

• OPEX %: 7.6%, up 0.2% compared to 13Q4

• Due to smaller revenue base. Mainly for RD expense.

• Non‐operating Gain NT$ 78 millions

• Mainly for recognization of Kodak securities distributed by Kodak to repay the debts

• EPS: NT$0.22

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Consolidated Income Statements

Unit: NT$ millions (Except EPS: NT$), %

Quarter	14.Q1	14.Q1	13.Q4	13.Q4	13.Q1	13.Q1	QoQ	YoY
Item	Amount	%	Amount	%	Amount	%	%	%
Net Sales	3,804	100.0	3,964	100.0	4,014	100.0	(4.0)	(5.2)
Cost of Goods Sold	(3,495)	(91.9)	(3,736)	(94.2)	(3,748)	(93.4)
Gross Profit	309	8.1	228	5.7	266	6.6	+2.4 ppts	+1.5 ppts
Operating Expenses	(289)	(7.6)	(294)	(7.4)	(326)	(8.1)	(1.8)	(11.5)
Operating Profit	20	0.5	(66)	(1.7)	(60)	(1.5)	+2.2 ppts	+2.0 ppts
Non-Operating Gain	78	2.1	(340)	(8.6)	15	0.4
Profit before Income Tax	98	2.6	(406)	(10.2)	(46)	(1.1)	+12.8 ppts	+3.7 ppts
Income Tax Expense	(16)	(0.4)	43	1.1	0	0.0
Net Profit	82	2.2	(363)	(9.1)	(46)	(1.1)	+11.3 ppts	+3.3 ppts
Basic EPS (after tax)	0.22		(0.96)		(0.12)

Note: Weighted‐average outstanding common shares of 14Q1 were 377,153 thousand shares

3

14.3.31 BS & CF Highlights

� Cash & Marketable Securities: NT$ 5,280M

• Debt Ratio: 36.8%, Current Ratio: 188%

� Notes & AR / Notes & AP : NT$ 2,720M / NT$ 2,323M

• Inventories: NT$ 1,148M

• BPS: NT$ 26.9

4

Consolidated BS & CF Highlights

Unit: NT$ millions, %

Year 14.3.31 13.12.31 13.3.31	Year 14.3.31 13.12.31 13.3.31
Item Amount % Amount % Amount %
Cash & Marketable Securities 5,280 32.9% 5,062 32% 5,260 31.8% Notes & accounts receivables, net 2,720 17.0% 2,421 15% 2,627 15.9% Inventories 1,148 7.2% 1,343 9% 1,819 11.0% Property, Plant and Equipment 5,676 35.4% 5,657 36% 5,488 33.1%
TOTAL ASSETS 16,037 100.0% 15,718 100% 16,566 100.0%
Bank loan 1,200 7.5% 1,000 6% 250 1.5% Notes & accounts payable 2,323 14.5% 2,511 16% 2,957 17.8%
TOTAL LIABILITIES 5,896 36.8% 5,819 37% 6,179 37.3%
Common Stock 3,855 24.0% 3,903 25% 3,961 23.9% Retain Earnings 4,372 27.3% 4,375 28% 4,883 29.5%
TOTAL EQUITY 10,141 63.2% 9,900 63% 10,387 62.7%
Year 14.1.1~3.31 13.10.1~12.31 13.1.1~3.31
Item Amount % Amount % Amount %
Net Cash Provided by Operating Activities	(128) 734 (22)

Note: Outstanding common shares as of 14.3.31 were 377,280 thousand shares

5

Q2 Guidance

6

Q&A Session

7

Safe Harbor Notice

We have made forward-looking statements in the presentation. Our forward-looking statements contain information regarding, among other things, our financial conditions, future expansion plans and business strategies. We have based these forward-looking statements on our current expectations and projections about future events. Although we believe that these expectations and projections are reasonable, such forward-looking statements are inherently subject to risks, uncertainties, and assumptions about us.

We undertake no obligation to publicly update or revise any forwardlooking statements whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events in the conference might not occur and our actual results could differ materially from those anticipated in these forward-looking statements.

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